Do you ever wonder if being a financial analyst is worth it? Most people who are aspiring to begin or grow in this career most of the time ask themselves one big question: “What will my salary look like?”
No wonder the discussion on financial analyst salary in India is common among those working in the finance realm. With increasing demand for analysts, one would like to know how much he or she would earn. The knowledge of the structure of this salary brings the expectations down to earth, whether you are a fresher or something like a decades-old one.
In this blog, we will dissect the structure of financial analyst salary in India to see how your salary increases with experience, skills, and location.
Key Responsibilities of a Financial Analyst in India
Before analysing the salary ranges, let us just attempt a brief explanation of what a financial analyst does because, after all, the pay comes with the job’s complexity.
The job of a financial analyst includes analysing the financial data, as well as market trends concerning a company’s performance on the stock market or any other financial market.
At times, companies or individuals may be seeking to know whether a certain investment idea is worth pursuing; a financial analyst would be involved in advising them on this. This would mean realising the general trend of the market, reading the report, and judging what outcome it would bring. It means being the financial compass for the company.
Some key responsibilities include:
- Analysis of financial reports and data to guide investments.
- Developing rich financial models to project top-line and bottom-line growth.
- Presenting recommendations based on the study.
- Risk management by studying trends, and predicting well.
Also Read: Roles, Responsibilities and Opportunities for a Financial Analyst in India
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Financial Analyst Salary in India Based on Experience: How Your Career Progression Impacts Earnings
It is known by all that experience is significant. However, how much does it really influence your salary as a financial analyst in India? Very much, actually.
Entry-Level Financial Analysts
For freshers, the average salary for a financial analyst in India is almost INR 3-4 lakhs per annum. It would sound low for many of you, but that’s a start. Numbers become better if you have more experience.
They are mainly on-the-job training, acquiring a practical understanding of financial models, reports, and even basic data analysis. Most junior analysts work under experienced senior financial officers to aid in research and data compilation.
Mid-Level Financial Analysts
A mid-level financial analyst who has 4 to 6 years of experience would demand anywhere between INR 6 to 9 LPA.
You are now going beyond just routine tasks to gaining actionable insights, perhaps leading a small team of junior analysts or working on more complex financial models.
Senior-Level Financial Analysts
Once one has transcended the 7-year mark, then senior analysts normally pull more than INR 10-12 LPA.
In senior roles, you are typically responsible for making strategic decisions with bottom-line implications for the companies. You may manage all financial strategies, lead risk portfolios, or directly work with CEOs and senior executives to shape financial planning.
The Impact of Designation on the Salary of Financial Analyst Salary in India
Designations play a very significant role in deciding the financial analyst salary in India. It is not just about time but a move to much more responsible and then higher paying roles.
| Job Role | Salary | Responsibility |
| Junior Financial Analyst | INR 2.5 LPA to 4 LPA | Generally assist seniors and learn the basics. |
| Senior Financial Analyst | INR 6 LPA to 12 LPA | Interpret financial data and make recommendations with a deep impact on business decisions. | Finance Manager | INR 10 LPA to 18 LPA | Oversee the financial planning, budgets, and forecasts within your organisation.
| Portfolio Manager | More than INR 20 LPA | Manages investment portfolios, making key decisions about where and how funds should be invested. |
| City | Expected Salary |
| Mumbai | INR 6 LPA to 15 LPA |
| Bangalore | INR 5 LPA to 12 LPA |
| Delhi | INR 5 LPA to 10 LPA |
Less Financially Active Cities
If you are in cities like Pune, Chennai, or Hyderabad, salaries would still appear competitive, though the same would be somewhat lower than that of top cities. Analysts in such cities would receive anything between INR 4 LPA and 9 LPA, depending on the organisation and the industry.
Salaries may be much lower, but the cost of living in cities like these is more affordable. It’s worth the trade-off between pay and living expenses.
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Top Skills That Can Improve Financial Analyst Salary in India
If you really want to boost your financial analyst salary in India, investment in your skills is a must.
Financial Modelling
This is the bread and butter of financial analysts. Companies want an analyst who can create a tremendous number of detailed financial models to predict outcomes and then guide that decision-making. Mastering financial modelling can make you stand out, leading to high remuneration.
Excel Mastery
While making Excel sound simple, what really makes it otherwise comes from the understanding of the advanced features involving it. From pivot tables to macros, there are many things that make the difference between having control over huge datasets and having them all crumpled in one place.
Data Analysis
The ability to work with data, come up with trends, and predict something is really important. Companies seek analysts who can interpret raw data into actionable insights. If you know your SQL or Python, your salary jumps even higher.
Communication Skills
No matter how good you are at handling numbers, without clear presentational skills for your insights, that is pretty much the extent of your value. Companies want a financial analyst who would be able to present data and financial forecasts in a meaningful way to stakeholders who are not necessarily financiers.
Certifications
These include CFA (Chartered Financial Analyst) or FRM (Financial Risk Manager), among others, which increase your credibility and often result in a salary raise.
How Educational Qualifications Affect Financial Analyst Salary in India
Do degrees matter? Absolutely.
Do you know what impacts your financial analyst salary in India? Let’s discuss.
Bachelor’s Degree
Typically, most of the financial analysts practising in India come from backgrounds with a bachelor’s degree in finance, economics, or accountancy. A bachelor’s degree generally pays within a range of INR 2.1 LPA to 4 LPA.
Master’s Degree (MBA or M.Com)
If you’re targeting senior job roles like Finance Manager or Senior Analyst, an MBA or an M.Com will help a lot.
Financial analysts with an MBA can expect salaries to begin at INR 7 LPA and go all the way up to INR 12 LPA, depending upon the institute and experience.
Professional Certifications
Professional certifications like CFA or CPA are game-changers for anyone serious about their career and looking to climb the professional ladder.
- CFA: The certification is on par with global standards and holds great promise for earning potential. The well-recognised financial analyst certification can command a hike up to INR 8 LPA, even in mid-level jobs.
- CPA: For students who are doing accounts, the CPA qualification will help them get into multinational companies with a better pay package. In India, CPAs get roughly INR 10 LPA or more.
Sector-Wise Salary Comparison for Financial Analysts
Is your salary as a financial analyst an outcome of the industry in which you work? Oh yes.
Not all sectors pay the same way. The sectors that pay more will help you plan your career in a better way.
Let’s see how salaries differ from sector to sector in India.
Banking and Finance
Banks, investment banks, and other financial institutions pay very handsome money to get good risk managers/analysts who can analyse market trends and guide investments.
Here, the salaries start from INR 5 LPA to 15 LPA, depending upon experience.
Consulting Firms
Another high-paying field for financial analysts includes consulting. It is exhausting work but the compensation packages are strong, especially if you are counselling big clients on critical financial decisions.
Across KPMG, Deloitte, or PwC, the compensation of financial analysts ranges from INR 6 LPA to 14 LPA
Tech Startups
Working in a startup is not a very conventional route for a financial analyst but is increasingly being opted for.
Startups are especially aggressive on the side of seeking out financial analysts who can actually help them to raise funds, budget their money, and scale their business.
Here, salaries might start a little lower-on average, between INR 4 LPA to 8 LPA-but equity and stock options can make this path incredibly rewarding in the long run.
Manufacturing and FMCG
If you are in a manufacturing or FMCG company, the salary will not be very high compared to banking or consulting.
However, these industries would always require financial analysts to keep costs under control, forecast demand, and other such operational requirements.
The salaries in this sector range from 4 LPA to 10 LPA.
Government and Public Sector
Government employees or workers for public sector undertakings (PSUs) generally receive lower packages as compared to those in the private sector.
The average here is between INR 3 LPA to 7 LPA.
The pay growth may not be as high as that in any other company, but stability can be achieved for a very long time by working with institutions like the Reserve Bank of India or the State Bank of India.
Also Read: Financial Analyst Interview Questions and Answers
Conclusion
The financial analyst salary in India varies based on experience, industry, and location. Starting salary in entry-level posts is decent, but the big money comes at the senior end of the scale with added skills and experience.
Banking, consulting, and tech companies generally offer the highest salaries, and the location also matters: Mumbai and Bangalore offer the most lucrative salaries.
Of course, certifications can increase your potential to earn a great salary. Overall, the career prospects for a financial analyst are bright and offer potential for growth and advancement across various sectors.
The Financial Analysis, Valuation, & Risk Management course by Hero Vired can really work in your favour if you are looking to enhance your career growth and increase your earning potential.
Which industry provides the most salary to financial analysts in India?
How can one raise their salary in India as a financial analyst?
Is location relevant to the salary of a financial analyst in India?
Updated on October 22, 2024